Revenue Budget for Better Work Ethiopia

This intervention is a comprehensive and coordinated ILO response to a need expressed by the Ethiopian constituents and other key industry stakeholders to advance decent work and inclusive industrialization in key priority sectors identi-fied in the Second Ethiopian Growth and Transformation Plan (GTP II). A commitment to the textile and apparel sector is part of Ethiopia’s broad Industrial Development Strategic Plan (2013-2025) to propel the country to middle-income status over the next decade. Despite the progress there are challenges affecting textile and garment sector. Productivity in the sector is still very low. Low productivity is often associated with low wages, underdeveloped working culture and poor working conditions, which are making the sector less desirable for workers. High labour turn-over and absentee rates perpetuate and com-pound these challenges. The supporting value chains are also challenged by low productivity and decent work deficits. Between 2015 and 2018, the ILO – in collaboration with tripartite constituents – partnered with the Swedish Internation-al Development Cooperation Agency (Sida) and H&M to implement a pilot project entitled “Improving Industrial Re-lations for Decent Work and Sustainable Development of Textile and Garment Industry in Ethiopia” (hereinafter re-ferred as “IR project”). The IR project aimed to contribute to national development by supporting the development of socially sustainable textile and garment industry through improved labour relations, productivity, wages and working conditions. The mid-term independent evaluation of the IR project indicated that, despite the challenging environment, the IR project demonstrated good achievements towards reaching the anticipated results. The evaluation recommended to develop a new comprehensive and coordinated projectfor the following reasons: (1) project’s stakeholders strongly requested to have continued support in order to achieve greater impact; (2) to ensure proper sustainability of the project financed by Sida and H&M; and (3) to scale up ILO’s support to strengthen industrial relations, working conditions and productivity in the sector, given the increasing number of industrial parks that are being established in different parts of the country (Mekelle, Kombolcha, Adama, etc.). The evaluation summary, with key findings, recommendations and les-sons learned from the IR project’s mid-term independent evaluation is included as Annex 1. Accordingly, this comprehensive intervention is proposed to advance decent work and inclusive industrialization in Ethi-opia’s garment and textile sectors by building on the recommendations and lessons learned from the IR project, as well as from ILO’s extensive experience in other countries, including through the implementation of ILO’s Better Work, Vi-sion Zero Fund and SCORE (productivity improvement training) programmes. The Better Work Programme is a unique partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC). It was launched in August 2006 in order to improve labour standards and competitiveness in global supply chains. The programme assists enterprises improve practices based on core ILO labour standards and national labour law. It does this with a strong emphasis on improving worker-management cooperation, working conditions and social dialogue. En-hancing respect for labour standards helps enterprises meet the social compliance demands of global buyers, improves conditions for workers, and helps firms become more competitive by increasing productivity and quality. The Vision Ze-ro Fund (VZF), an initiative of the Group of Seven (G7) countries, aims at preventing work-related deaths, injuries and diseases in sectors operating in or aspiring to join global supply chains (GSCs). VZF’s main objective is to increase collec-tive public and private action aimed at fostering and enhancing concrete occupational safety and health (OSH)

Project symbol

ETH/19/01/REV

Admin unit

CO-Addis Ababa

Start date

06/06/2018

End date

31/12/2023

Total allocation

249136

Total expenditure

Status

Closed

249136

Development Partners

Multiple subscriptions Better Work

Country/Countries

Ethiopia

Outcomes

Outcome 6: Protection at work for all